Signing of the Exchange of Notes for The Agricultural and Rural Development Two Step Loan Project
2025/1/14
- On 14th January, 2025, in Dar es Salaam of United Republic of Tanzania, in the presence of Mr. Fujii Hisayuki State Minister for Foreign Affairs in Japan, the Exchange of Notes(E/N) for ODA loan project "The Agricultural and Rural Development Two Step Loan Project" was signed by H.E. MISAWA Yasushi, Ambassador of Japan to the United Republic of Tanzania and Dr. Mwigulu Lameck Nchemba Madelu, the Minister for Finance of the United Republic of Tanzania.
- The Government of Japan will provide a loan of up to twenty two billion seven hundred forty two million Japanese Yen (\22,742,000,000), approximately one hundred sixty three million six hundred twelve thousand US dollars ($163,612,000) to the Government of the United Republic of Tanzania.
- The objective of this project is to promote financial intermediary functions related to agricultural and rural development finance in Tanzania and increase agricultural productivity by providing capacity building support through two-step loans to farmers and others throughout Tanzania and medium- and long-term loans to the Tanzania Agricultural Development Bank (TADB).
- Facilitating agricultural financing on more concessional terms through the TADB will strengthen agricultural value chains by introducing agricultural technologies adapted to climate risks, such as the promotion of agricultural mechanisation for more efficient operations, appropriate farming methods according to weather conditions and efficient use of water resources through the development of irrigation facilities such as drip irrigation.
- For a long time, Japan has supported Tanzania's agricultural sector from various angles. This project will not only contribute to the industrialisation and commercialisation of the agricultural and rural sector but will also contribute to food security in Tanzania and beyond.